NEW SASKATCHEWAN SAVINGS BONDS EARN THREE PER CENT

The interest rate for Saskatchewan Savings Bonds (SSB) Series 12 has been set at three per cent.

The bonds will be available for purchase from June 7th to June 25th at local credit unions, chartered banks, trust companies, investment dealers and other authorized agents throughout Saskatchewan.

In announcing the rate, Finance Minister Jim Melenchuk noted the SSB program has been very successful, with a current value of just over $799 million.

"The success of this program demonstrates that Saskatchewan people know the future of this province is wide open, and it's well worth investing in," Melenchuk said. "Saskatchewan Savings Bonds are a safe, secure investment opportunity for our residents. They support this program because the interest paid on the bonds stays here at home, in the pockets of Saskatchewan people."

Saskatchewan Savings Bonds are available only in Saskatchewan and for only two weeks each year. They can be purchased in $100 denominations to a maximum of $200,000. An installment purchase plan is also available for purchases up to $2,500. Bonds are redeemable annually without penalty for the full amount plus interest.

Holders of maturing Series 7 SSBs have the option of cashing in their bonds or reinvesting in Series 12 Bonds. Series 7 Bonds mature on July 15th, 2003 and no interest will be earned after that date.

Interest rates for outstanding series for the year ending July 15th, 2004 will be:

• Series 8 (matures July 15th, 2004) - five per cent

• Series 9 (matures July 15th, 2005) - 5.75 per cent

• Series 10 (matures July 15th, 2006) - 4.25 per cent

• Series 11 (matures July 15th, 2007) - 3.25 per cent

People with questions about Saskatchewan Savings Bonds can call 1-800-567-7077 or visit the government homepage at www.gov.sk.ca and click on the Saskatchewan Savings Bond link. This year, bond application forms are available for print-off from that link. Bond purchasers must still mail in a hard copy of their form, with payment.

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For More Information, Contact:

Mike Woods Finance Regina Phone: (306)787-6578 Email: mwoods@finance.gov.sk.ca Cell: (306)539-9588